Mr Price has seen strong sales growth, but the group is still cautious about extending credit to consumers. <\/p>\n\n\n\n
In a trading update for the third quarter of its 2025 financial year, 29 September 2024 to 28 December 2024, Mr Price saw retail sales growth of 10.6% to R14.6 billion. <\/p>\n\n\n\n
South African retail sales grew 10.8% to R13.6 billion, while non-South African corporate-owned store sales increased by 7.7% to R1 billion. <\/p>\n\n\n\n
Total store sales jumped by 10.6%, while online sales increased by 10.5%. Online sales also contributed 1.8% of total retail sales during the third quarter.<\/p>\n\n\n\n
The group also opened its 3000th store during the quarter after it opened a total of 78 new stores. This expanded the group’s footprint to 3,031 by the end of the period.<\/p>\n\n\n\n
The group also noted that cash sales grew by 11.1%, increasing its total contribution to retail sales to 90.9%. <\/p>\n\n\n\n
Credit sales also increased 5.7% despite the group\u2019s account approval framework being implemented cautiously. <\/strong><\/p>\n\n\n\n This was against a backdrop of consumer credit applications reaching an all-time high in Q3 2024, while rejection rates stayed high, data from the National Credit Regulator shows.<\/p>\n\n\n\n Retail sales in the apparel segment grew by 10.9% during the quarter, gaining a market share of 80 basis points. <\/p>\n\n\n\n Studio 88, which the group recently acquired, increased retail sales by double digits. <\/p>\n\n\n\n The Homeware segment’s retail sales growth of 7.9% continued to show momentum, achieving its highest quarterly sales of the financial year thus far. <\/p>\n\n\n\n Yuppiechef saw double-digit sales growth and reached its highest December market share level to date.<\/p>\n\n\n\n The Telecoms segment also continued its high growth performance, with retail sales up 16.5%, driven by strong performances over Black Friday and December. <\/p>\n\n\n\n Looking ahead to 2025, Mr Price said that the economic outlook for South Africa is expected to improve compared to 2024. <\/p>\n\n\n\n “A steadily improving consumer environment, aided by decreasing inflation and lower interest rates, continues to build a solid platform for growth in comparison to recent years,” said the group. <\/p>\n\n\n\n However, it noted several risk events that “could dampen growth forecasts globally”.<\/p>\n\n\n\n This includes the uncertain international political and economic landscapes that could impact inflation and interest rate expectations.<\/p>\n\n\n\n The positive impact of the Government of National Unity (GNU) and its ability to continue building on its initial success will also need to be closely monitored, it said.<\/p>\n\n\n\n Despite these external factors, the group’s management remains optimistic about the year ahead. <\/p>\n\n\n\n “The group\u2019s strong merchandise execution, which offers its customers differentiated fashion-value, and its EDLP pricing model makes it well positioned to continue its profitable market share gains.” <\/p>\n\n\n\n The first three weeks of January were positive for the group, which saw double-digit retail sales growth and gross profit margin gains across each trading segment.<\/p>\n\n\n\n The group said it is now focused on continuing its strong execution for Q4.<\/p>\n","protected":false},"excerpt":{"rendered":" Despite credit sales increasing,\u00a0Mr Price was cautious in extending credit to customers at the end of 2024. <\/p>\n","protected":false},"author":95,"featured_media":808021,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[2910],"class_list":["post-808015","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-mr-price"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808015","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=808015"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808015\/revisions"}],"predecessor-version":[{"id":808038,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/808015\/revisions\/808038"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/808021"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=808015"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=808015"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=808015"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Q3 FY2025 vs FY2024<\/strong><\/td> Retail sales growth<\/strong><\/td> Contribution to retail sales<\/strong><\/td><\/tr> Apparel segment<\/td> 10.9%<\/td> 83.4%<\/td><\/tr> Homeware segment<\/td> 7.9%<\/td> 13.9%<\/td><\/tr> Telecoms segment<\/td> 16.5%<\/td> 2.7%<\/td><\/tr> Group<\/td> 10.6%<\/td> 100%<\/td><\/tr><\/tbody><\/table><\/div> Outlook <\/h2>\n\n\n\n